Who this is for
- Partnerships filing Form 1065
- Multi-member LLCs taxed as partnerships
- Partnerships with guaranteed payments, special allocations, or partner changes during the year
- Partnerships with activity in more than one state
Partnership tax returns: Form 1065
GHL prepares Form 1065 and a Schedule K‑1 for each partner, for partnerships and for LLCs with more than one member. The return shows how income and deductions are allocated among the partners, the guaranteed payments they received, and each partner’s capital account, all from the partnership’s books.
The work begins with the prior-year return, the current books, and any change in partners, ownership, or activity during the year. GHL reports allocations according to the partnership agreement the partners provide, and prepares the return from the partnership’s own records.
Compare return typesThe Service
Who it’s for, and what GHL handles
GHL prepares the return from the partnership's books and reports allocations according to the partnership agreement the partners provide.
Included in this work
- Form 1065 and the related federal schedules
- A Schedule K-1 for each partner
- Allocations of income, deductions, and credits as the partnership agreement sets them out
- Guaranteed payments reported to the partners who receive them
- Partner capital-account reporting
- State partnership returns and apportionment
Arranged separately
- Monthly bookkeeping
- Books cleanup or catch-up before preparation
- Rebuilding capital accounts from earlier years
- Amended returns and responses to notices
- Each partner's own Form 1040, as its own engagement
How Preparation Works
From the first conversation to the filed return
- 01Intake
An inquiry, then a conversation about the return: the partners, the states where the partnership files, and what changed this year. Documents come later, through the Secure Client Portal.
- 02Prior return and filing context
Last year's Form 1065 and partner K-1s show the opening capital accounts, depreciation, and how allocations were reported.
- 03Records review and open questions
GHL reviews the year-end books, the partnership agreement, and partner activity, and lists what is missing or unclear before preparation starts.
- 04Preparation and review
The return and a Schedule K-1 for each partner are prepared from the books, then reviewed before they go to the partnership.
- 05Filing authorization and delivery
A partner or the partnership representative reviews the finished return and signs the e-file authorization. GHL files it and delivers a copy for the records.
Worth Knowing
Issues that commonly affect partnership returns
Allocations
Partners share income, deductions, and credits the way the partnership agreement sets out, which isn't always in proportion to ownership.
Guaranteed payments
A payment to a partner for services or the use of capital, set without regard to the partnership's income, is reported to that partner separately from their share of profit.
Capital accounts
Each partner's Schedule K-1 reports a capital account, so contributions, distributions, and the year's results tie out partner by partner.
Partners joining or leaving
When ownership changes during the year, each partner's share is worked out for the part of the year they were a partner.
Scope And Fees
What affects scope and fees
The scope is reviewed before work begins, and the fee follows from it.
- The number of partners and Schedule K-1s
- Special allocations, guaranteed payments, and ownership changes
- The number of states where the partnership files
- Whether the books and capital accounts are complete at year end
- Fixed assets and depreciation
- Notices, amended information, or research outside the original scope
Records To Gather
What to gather
An engagement begins after the first conversation with GHL. This list helps you get ready for it.
- Prior-year Form 1065 and partner Schedule K-1s
- Year-end profit and loss statement and balance sheet
- The partnership or operating agreement and its amendments
- Partner details and ownership percentages
- Contributions, distributions, and guaranteed payments
- Capital-account records
Who does the work
- Corinne Shipman, MBA, MSM, leads GHL's tax and trust practice and has more than 12 years of tax experience.
- GHL prepares returns for individuals, businesses, partnerships, and trusts, including Form 1041.
- Corinne works with clients in English, Spanish, and French.
- Clients send their documents through the Secure Client Portal.
Common Questions
Partnership returns FAQs
Does every partner get a Schedule K-1?
Yes. GHL prepares a Schedule K-1 for each partner with the partnership's return.
How are allocations decided?
GHL reports allocations according to the partnership agreement the partners provide, so a current copy, with every amendment, is part of the records.
Is bookkeeping part of return preparation?
Return preparation starts from books that are complete for the year. When they need monthly bookkeeping or a catch-up first, GHL does that as bookkeeping, scoped as its own work.
Can GHL prepare the partners' personal returns?
Yes. GHL prepares each partner's Form 1040 as its own engagement.